Econ1-Fall2010-07B-Efficiency-handout - Readings Economics1...

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Economics 1 rinciples of Microeconomics Principles of Microeconomics 7. Efficiency & Exchange (B) Fall 2010 Herb Newhouse 1 eadings Readings Ch. 6: Efficiency and Exchange (p. 176 – 183, 190 – 196) y g (p , ) Market Equilibrium and Efficiency The Cost of Preventing Price Adjustments Taxes and Efficiency I’m not lecturing on First Come, First Served Policies or g , Marginal Cost Pricing of Public Services (p. 185 – 190). You should know this material. d i f th tt i f Dd & Sl It’s a good review of the construction of Demand & Supply curves. Combines that with the concepts of efficiency. 2 utline Outline mits to efficiency Limits to efficiency. Deadweight loss of price ceilings/price floors. (Per unit) Taxes. Equilibrium. Tax burden/Deadweight loss. 3 mits to Efficiency Limits to Efficiency But, Q* is only efficient when: , Q y 1. Buyers and sellers are well informed.
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This note was uploaded on 06/12/2011 for the course CS 1 taught by Professor Staff during the Fall '08 term at Cornell.

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Econ1-Fall2010-07B-Efficiency-handout - Readings Economics1...

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